Norway facing EU import duties after probe into salmon prices

Date: 02/05/02

By Laurence Frost

NORWEGIAN salmon firms could be hit with EU import duties as the Commission investigates claims that they have broken the terms of an agreement setting minimum price levels when dealing with the Union.

Officials are studying evidence that a number of Norwegian operators have used 'dual invoicing' to mask sales below the prices agreed five years ago in a deal to avert EU 'anti-dumping' duties.

Dumping occurs when exporters sell goods at below cost-price to get a foothold in an overseas market. Trade chief Pascal Lamy has confirmed that the Commission is investigating a 'variety of data indicating that there are significant disturbances on the market', including 'possible fraud giving rise to violations of the undertakings'.

Danish VAT authorities raised the alarm earlier this year when they seized a shipment of salmon accompanied by two invoices - one showing the official minimum price and one showing the actual price paid by the customer.

Now it is understood EU officials have broadened their inquiry and are looking into the transactions of a number of companies whose reported sales figures do not add up. 'There's a certain number of companies that are being looked at,' said a Commission official.

The probe comes amid a review of the EU-Norway agreement struck in 1997 after a Commission trade investigation found Norwegian salmon farmers had been dumping fish on EU markets, damaging local producers.

Under the salmon agreement, Norwegian firms have been able to avoid anti-dumping and anti-subsidy duties by signing binding pledges to maintain minimum prices.

Last year the Commission reapplied anti-dumping duties to exports by Norwegian producer Haafa Fish after it sold salmon below the agreed minimum price.

Salmon producers in Scotland, who supply most of EU demand, believe illegally priced imports were partly responsible for a recent price collapse from which the market has just recovered.

'The Commission needs to be aware that this is an issue that's very important to our salmon farming industry,' said Scottish Nationalist MEP Ian Hudghton.

'Under-the-counter prices are allegedly being charged through some third-party offshore agreements.'

Hudghton said the review under way should not be allowed to distract officials from pursuing fraudulent firms.

Norwegian salmon firms could be hit with EU import duties as the European Commission investigates claims that they have broken the terms of an agreement setting minimum price levels when dealing with the European Union.